Source: adapted from McCartney, S. (2012) “How Airlines Spend
Your Airfare”, Wall Street Journal, June 6.
Note: A domestic plane of around 100 passengers would by the MD-95
(Boeing 717) or the Embraer 190. Cost Structure of a Typical Domestic 100 Passengers Flight,
c2012Domestic flights represent the dominant type of service offered
by most airlines around the world, so the cost structure is highly
representative of the general cost structure airlines are facing.

Fuel costs remain the dominant (29%) cost assumed for
flights. The important increase
in jet fuel prices since 2000 has placed significant
pressures on airfares.

Salaries (20%) are the second most important cost.

Ownership costs (16%) include buying, leasing and insurance
costs.

Fees and taxes (14%) are related to government oversight of
the air transport system (e.g. air control), airport landing
fees and security screening costs.

Other costs (9%) include a variety of expenses related to
inflight catering, airport gate fees and compensation paid to
passengers (overbooked flight, lost luggage, etc.)

The depicted cost structure must however be considered with
caution because of the variety of domestic fleets maintained by air
carriers. For instance, a prevalent plane used for domestic flights,
the Boeing 737-700, can carry about 140 passengers, implying a
slightly different cost structure than the one indicated above.